Correction: Fitch Upgrades 2 & Downgrades 1 Class of American General CBO 1998-1, Ltd.

CHICAGO -- (This is an amended version of a press release issued Oct. 18, 2004, containing revised information in the third paragraph.)

Fitch Ratings has affirmed the ratings of two classes of notes, upgraded the ratings of two classes of notes and downgraded the rating of one class of notes issued by American General CBO 1998-1, Ltd./(Delaware) Corp. (American General), which closed Nov. 5, 1998. The following rating actions are effective immediately:

The ratings on the following notes have been upgraded:

-- $4,000,000 class A-3A notes to 'A' from 'A-';

-- $15,000,000 class A-3B notes to 'A' from 'A-'.

The rating on the following notes has been downgraded:

-- $25,000,000 class B-2 notes to 'C' from 'CCC'.

The ratings on the following notes have been affirmed:

-- $147,574,500 class A-2 notes 'AAA';

-- $50,000,000 class B-1 notes 'B-';

American General is a collateralized bond obligation (CBO) managed by AIG Global Investment Corp. The collateral of American General is composed of high yield bonds invested in corporate bonds and non-emerging markets corporate debt. Payments are made semi-annually in June and December and the reinvestment period ended in June 2003. Included in this review, Fitch discussed the current state of the portfolio with the asset manager and its portfolio management strategy.

According to the Oct. 2, 2004 trustee report, the portfolio includes $20.20 million (9.28%) in defaulted assets. The deal also contains $69.97 million (32.16%) assets rated 'CCC+' or below excluding defaults. The class A overcollateralization (OC) test is passing at 133.5% with a trigger of 120% and the class B OC test is failing at 91.3% with a trigger of 104%. This transaction is currently in an event of default due to the failure to maintain the class B OC test at an amount at least equal to 90% of the OC trigger. This event has not been cured by a change of asset manager and the trading ability of the current asset manager has been limited. Given that the class A-1 notes have been paid in full at the last payment date, the credit enhancement of the class A-2 and A-3 notes have improved and any principal proceeds will be used to redeem the notes sequentially.

The ratings of the class A-2 and A-3 notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the stated maturity date. The rating of the class B-1 notes addresses the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the stated maturity date. The rating of the class B-2 notes addresses the likelihood that investors will receive ultimate payment of the stated balance of principal by the stated maturity date.

Fitch will continue to monitor American General closely to ensure accurate ratings. Deal information and historical data on American General is available on the Fitch Ratings web site at 'www.fitchratings.com'.